Paying HSBC cheque into HSBC account


C

CliveM

Does anyone know if a HSBC cheque paid into an HSBC account clears in the
usual 4 days cycle or quicker as they are both HSBC?
 
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L

Lo Salt

CliveM said:
Does anyone know if a HSBC cheque paid into an HSBC account clears in the
usual 4 days cycle or quicker as they are both HSBC?
Not sure, but my bank, (Halifax), you have to wait 5 working days.
 
M

Marcus Collie

T. said:
Quicker. Should be overnight, I think.
Only if it is a 'house' cheque - ie issued on the same sort code as the
payee. Otherwise it will take the full cycle!

MC
 
C

Chris

Marcus Collie said:
Only if it is a 'house' cheque - ie issued on the same sort code as the
payee. Otherwise it will take the full cycle!
I will beg to differ on that, it is that it is presented at the same code as
the payers account is held at, doesn't matter if it is the payees branch or
not as the credit will still be processed the same day to the account, for
that matter the same clearance from the payers account would apply even if
you banked with another bank and presented the cheque and a paying in slip
at payers branch.

I actually have a feeling that HSBC don't allow you to access the money any
quicker than the normal clearing cycle even though they have payers account
on presentation, if you want it quicker they charge you for special
presentation, on the flip side the money has still been debited from the
payers account so it is basically yours even if they do make you wait.

Chris
 
T

Tim

... on the flip side the money has still been debited from the payers
account so it is basically yours even if they do make you wait.
Do you get interest on the money while it is clearing?
 
P

Peter Ibbotson

CliveM said:
Does anyone know if a HSBC cheque paid into an HSBC account clears in the
usual 4 days cycle or quicker as they are both HSBC?

Maybe. What I can say is that online payments from a FirstDirect account to
a HSBC account in the UK go overnight. This did surprise me as I thought
only payments within the same branch were same day.
 
M

Marcus Collie

I will beg to differ on that, it is that it is presented at the same code
as
the payers account is held at, doesn't matter if it is the payees branch
or
not as the credit will still be processed the same day to the account, for
that matter the same clearance from the payers account would apply even if
you banked with another bank and presented the cheque and a paying in slip
at payers branch.

I actually have a feeling that HSBC don't allow you to access the money
any
quicker than the normal clearing cycle even though they have payers
account
on presentation, if you want it quicker they charge you for special
presentation, on the flip side the money has still been debited from the
payers account so it is basically yours even if they do make you wait.

Chris
Lets go back shall we?:

OP - does a HSBC debit credited to an HSBC account clear faster than 3rd
party bank?
Me - "Yes, but only if it is a house cheque - ie drawer and payee at same
branch, ie same sort code, in which case funds clear as soon as cheque
processed that day.

I am sorry, but that is a factually accurate statement - if you don't
believe me contact your bank, in fact any bank, and ask them!

MC
 
M

Marcus Collie

Peter Ibbotson said:
Maybe. What I can say is that online payments from a FirstDirect account
to a HSBC account in the UK go overnight. This did surprise me as I
thought only payments within the same branch were same day.
An online payment is different to a cheque - as long as the online payment
is within the same bank it will be instantaneous - or at least this is the
case in Natwest, Barclays, Cahoot and HSBC/F.D - don't know about any
others.

MC
 
T

Tim

That's better than with FirstDirect then (a division of HSBC) - who *don't*
apply interest until the cheque has cleared. I didn't think that Lloyds-TSB
did either ...
 
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C

Chris

Marcus Collie said:
Lets go back shall we?:

OP - does a HSBC debit credited to an HSBC account clear faster than 3rd
party bank?
Me - "Yes, but only if it is a house cheque - ie drawer and payee at same
branch, ie same sort code, in which case funds clear as soon as cheque
processed that day.

I am sorry, but that is a factually accurate statement - if you don't
believe me contact your bank, in fact any bank, and ask them!
I will accept that the statement above is true as you have now added the
word DRAWER which wasn't in you original reply which just said it had to be
the payees bank
 
C

Chris

Chris said:
even

I will accept that the statement above is true as you have now added the
word DRAWER which wasn't in you original reply which just said it had to be
the payees bank
The reason I was pointing out is that I know of someone who had a cheque
issued by a company they thought were in trouble, they phoned their bank's
business support team stressing their suspicions (fortunately the call was
recorded automatically) and were adviced that the quickest way to clear the
cheque was take it into the local branch and request special presentation on
it, next day the payee went bang, accounts were frozen and the cheque was
dishonoured.

It cost the bank the full value of the cheque as the matter was taken to the
banking ombadsman with the call recording and the complaint was upheld as
had the advice been in the circumastances to immediately drive the 20 mile
to present the cheque at the drawers bank it would have been honoured.
 
J

john boyle

Chris <c__m__h@hotmail.com> said:
The reason I was pointing out is that I know of someone who had a cheque
issued by a company they thought were in trouble, they phoned their bank's
business support team stressing their suspicions (fortunately the call was
recorded automatically) and were adviced that the quickest way to clear the
cheque was take it into the local branch and request special presentation on
it, next day the payee went bang, accounts were frozen and the cheque was
dishonoured.

It cost the bank the full value of the cheque as the matter was taken to the
banking ombadsman with the call recording and the complaint was upheld as
had the advice been in the circumastances to immediately drive the 20 mile
to present the cheque at the drawers bank it would have been honoured.
I think contributors to this thread may be confusing two meanings of the
word 'cleared'.

I think the original OP and possibly the one above are really asking
'when is the cheque irrevocably paid' which is quite a different
question to 'after what period will my bank regard a cheque as being
paid to such an extent that they will let me draw against it without
charging me interest'.

The post above refers to the former.

Presenting a cheque for payment over the counter at the drawee will mean
that the cheque, if paid, will be debited to the drawers account
immediately and the corresponding credit will then be sent to the payees
account. If the payee maintains his account at the drawee then it can be
instantaneous but otherwise it will be sent via the credit clearing.
Some banks truncate the credit clearing to same day.

If the cheque is crossed, even with the most simple open crossing, then
the cashier at the drawee wont tell the payee the fate of the cheque but
they will tell the payees bank if they ring after 'close of business',
i.e. 3.30, but this practice is changing and may already have done so.

If you pay in a cheque at any branch other than the drawee then the
cheque will be remitted via the clearing and despite not needing to be
physically presented at the drawee any more, the time scale for it
becoming available for you to draw against at your branch remains the
same. Different banks have different practices so this can be 3, 4 or
more working days.

Asking for a cheque to be 'specially presented' doesn't get the cheque
'cleared', (i.e. available to draw on without incurring interest') any
quicker at all, but it does get it presented at the drawee quicker and
its fate can be determined the next day, but the drawee sends a bank
giro credit to the collecting bank as payment. Most banks will let a
payee draw against a specially presented cheque once the drawee learns
the fate of the cheque, i.e. next day, but the payee will still be
charged interest because the collecting bank wont get paid by the drawee
for a few days.
 
E

Eric Jones

Chris said:
even

I will accept that the statement above is true as you have now added the
word DRAWER which wasn't in you original reply which just said it had to be
the payees bank

Lloyds Tsb credit and clear PERSONAL account cheques which are credited to
another PERSONAL account there and then - FACT----------------------!!! It
does not matter where the account is. It is called Real time online banking
system.
Eric
 
R

Ronald Raygun

Eric said:
Lloyds Tsb credit and clear PERSONAL account cheques which are credited
to another PERSONAL account there and then - FACT--!!! It
does not matter where the account is. It is called Real time online
banking system.
Don't tell me it's called ROBS for short.
 
M

Marcus Collie

another PERSONAL account there and then - FACT----------------------!!! It
does not matter where the account is. It is called Real time online
banking
system.
Eric
Hmm - Real time online banking system. Are you trying to suggest that
Lloyds, by some miraculous new system, both credit and clear a personal
account cheque from one account to another simultaneously, irrespective of
drawer? I am sorry, but that is not the case at all. Try it sometime!
Even better, go to:

http://www.apacs.org.uk/about_apacs/htm_files/chequecred.htm,

or ANY bank's website and examine the current account T&Cs.

As several posters other than I have reiterated on many occasions, there is
ONE exception to this system - that of the house cheque.

The cheque system is essentially still a paper chase system - and hence same
day clearance is simply not possible - the cheque still travels from one
bank to another for verification of funds availability, as well as for the
issuing bank to inspect the cheque for falsification, errors, etc (though
they don't for cheques of less than £1000 or so depending on the individual
banks' policies)

Do not confuse cheque payment with any other payment system - it is quite
different to online, telephony-based, BACS, CHAPS & any other systems.

MC
 
J

john boyle

Marcus Collie said:
The cheque system is essentially still a paper chase system - and hence same
day clearance is simply not possible - the cheque still travels from one
bank to another for verification of funds availability, as well as for the
issuing bank to inspect the cheque for falsification, errors, etc (though
they don't for cheques of less than £1000 or so depending on the individual
banks' policies)
No longer true.

Statutory Instrument 1996 No. 2993, The Deregulation (Bills of Exchange)
Order, removed this requirement.

Do not confuse cheque payment with any other payment system - it is quite
different to online, telephony-based, BACS, CHAPS & any other systems.
'Truncation' as electronic presentation is sometimes called, can be, and
often IS, instantaneous. I reckon Eric is right.
 
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E

Eric Jones

Marcus Collie said:
Hmm - Real time online banking system. Are you trying to suggest that
Lloyds, by some miraculous new system, both credit and clear a personal
account cheque from one account to another simultaneously, irrespective of
drawer? I am sorry, but that is not the case at all. Try it sometime!
Even better, go to:

http://www.apacs.org.uk/about_apacs/htm_files/chequecred.htm,

or ANY bank's website and examine the current account T&Cs.

As several posters other than I have reiterated on many occasions, there is
ONE exception to this system - that of the house cheque.
out all stopped cheques, any accounts that have insufficent funds to pay and
a signature mandate is held on screen to check signatures.I will repeat that
this applies to Personal accounts only and not Business account cheques. It
makes no odds whether your account is in London and the cheque you pay in is
drawn on someone living in say Newcastle or Sunderland.
Do not confuse cheque payment with any other payment system - it is quite
different to online, telephony-based, BACS, CHAPS & any other systems.

MC
know what a cheque is and know how to differentiate between the above
methods.Obviously your bank is not up to it why not pop down to your local
branch of LTSB and transfer your account. You will be most welcomed (well if
you have a clear credit history , can identify yourself and confirm your
address, agree to pay your salary into your account and promise never ever
to step into a branch at lunchtime as you will disturb my lunch!) LOL
Eric
 

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